LED electronic screen mergers and acquisitions will soon appear

"The merger and reorganization of LED electronic screens will soon show" With the rapid development of the economy, LED electronic screens have also played an important role in promoting cultural propaganda and condensing core competitiveness. LED electronic screens have been the only display platform for a long time. The competition in the LED electronic screen industry is also quite fierce. Mergers and acquisitions have become a new round of wind vane in the industry. Large companies rely on their strength to speak, while small LED electronic screen companies rely on cheap prices to survive. This status quo will soon be broken in 2017. All aspects of advantageous resources. Although the first-line brand enterprises represented by listed companies have continued to make efforts in production lines, channels and brand building in the past, the industry is still dominated by small and medium-sized enterprises. The annual revenue of the main business of LED electronic screens exceeds 1 billion yuan. There are no more than 5 enterprises, most of which have revenues below 100 million yuan.

These small and medium-sized enterprises have low financing and anti-risk capabilities, serious product homogeneity, and lack of competitiveness. Under the continuous downward trend of the macro economy, coupled with the general price increase of raw materials last year and the unwillingness of suppliers to lend and other unfavorable factors, some small and medium-sized enterprises It will be difficult to cross this threshold. Under the adjustment of the market economy, "shuffling" as a direct expression of economic innovation and development is especially obvious for the LED electronic screen industry. For a long time, the LED electronic screen industry has had the characteristics of "complexity". As a branch of semiconductor applications, it is also a high-tech industry in terms of technology. Undoubtedly, LED electronic screens are also very sensitive to market performance.

Since the development of led electronic screens, the reshuffle of the industry has continued for many years. The current led electronic screen industry is in a stage of development and improvement. Its industry structure of "the strong are not strong, and the weak are not weak" has not been fundamentally The industry concentration needs to be further strengthened. It is worth noting that, affected by the global economic downturn for several consecutive years, the supply and demand of the LED electronic screen industry, which is the icing on the cake, is greatly limited. In order to seek market share, small and medium-sized enterprises in the LED electronic screen industry have resorted to fierce competition in the form of "killing one thousand enemies and harming themselves by eight hundred" through price wars in order to survive in recent years, which has greatly reduced the profitability of many small and medium-sized enterprises. , Industry and enterprise bankruptcy incidents are common, and under the impact of the wave of LED display technology innovation in the future, "old" technology will gradually become outdated. This is undoubtedly a huge blow to Chinese LED electronic screen companies that originally lacked innovation. LED electronic screen companies that survive with "old" technology will be a fatal blow.

Due to the filtering of small and medium-sized enterprises, industry resources will be further occupied by powerful large enterprises. In the case of the urgent need to expand the business of large enterprises, in the future, mergers and acquisitions and cross-border will become a significant way for LED electronic screen enterprises to expand their scale and pursue profits, and will occur continuously over a long period of time. Its performance mainly includes two aspects: horizontal mergers and cross-border mergers and acquisitions. Horizontal mergers and acquisitions will mainly focus on companies with certain influence in the industry's subdivided fields. It will be sought after; in terms of cross-border mergers and acquisitions, AR/VR will still be a hot spot. In addition, media, sports, education and other fields will continue to receive attention. Generally speaking, in the field of conventional LED screens, the gross profit of many enterprises is even less than 10%.

In recent years, labor costs and housing rental costs have increased sharply in China, especially first-tier cities such as Beijing, Shanghai, Guangzhou, Shenzhen, etc., coupled with factors such as the price increase of raw materials that began in the second half of last year, a comprehensive analysis shows that the situation in 2017 will not be conducive to the low financing ability, profit and income of some parts. Small and medium-sized LED electronic screen companies with weak single capabilities can survive. 2017 may become a watershed, and some small and medium-sized enterprises that are struggling to survive will be shuffled out in this wave of adjustments. .